Register with us today

and in less than 60 seconds continue your access to:Latest news headlinesAnalytical topics and featuresCommodities videos, podcast & blogsSample market prices & dataSpecial reportsSubscriber notes & daily commodity email alerts

Already have an account?

Log in to register

Forgot Password

Please Note: Platts Market Center subscribers can only reset passwords via the Platts Market Center

Enter your Email ID below and we will send you a link to reset your password.

  • Email Address* Please enter email address.

If you are a premium subscriber, we are unable to send you a link to reset password for security reasons. Please contact the Client Services team.

If you are a Platts Market Center subscriber, to reset your password go to the Platts Market Center to reset your password.

In this list

Vale downgraded to junk with negative outlook: Moody's

Agriculture | Energy | Coal | Electric Power | Natural Gas | Oil | Metals | Petrochemicals | Shipping

2020 US Elections

Agriculture | Shipping | Dry Freight

Platts Dry Freight Wire

Shipping | Oil | LNG | Coal | Petrochemicals | Agriculture | Metals

Seoul Commodity Market Insights Virtual Forum

Coal | Emissions | Metals | Steel | Raw Materials

Iron ore in focus 2: Ex-China demand downturn hits pellet trade

Vale downgraded to junk with negative outlook: Moody's

Sao Paulo — Moody's Investors Service has downgraded the credit rating of Brazil-based iron ore miner Vale to Ba1 from Baa3 on the global scale, the ratings agency said Wednesday.

Not registered?

Receive daily email alerts, subscriber notes & personalize your experience.

Register Now

At the end of January, S&P Global Ratings had put Vale's bonds on negative watch, warning it could cut the BBB- rating by several notches depending on fines and loss of an operating license in the affected area.

Fitch Ratings also had cut Vale's rating in late January from BBB+ to BBB-, or one notch above junk status.

"These rating actions conclude the review for possible downgrade for Vale's ratings initiated on 29 January 2019 in response to the collapse of the tailings dam at the Corrego do Feijao mine in the city of Brumadinho, state of Minas Gerais," Moody's research said, pointing to "considerable uncertainties associated with the full impact and long-term implications of this labor and environmental disaster for Vale's overall credit profile, as well as the significant overhang of litigation exposure and financial liability that is likely to persist in the years to come."

Moody's also changed Vale's outlook for all ratings to negative from a previous under review for downgrade. "The negative outlook incorporates the uncertainties around the amount and timing of future cash outlays related to the accident. Moreover, it also reflects the risks of ongoing investigations about the cause of the accident and responsibilities," it said.

Moody's action may be expected to put further downward pressure of Vale's share price, which opened the market Wednesday at $12.52/share on the New York Stock Exchange.

-- Guilherme Baida,

-- Edited by Joe Innace,